MSN recently published an article that lists the nine best, livable cities.  The criteria used to determine the “top nine” include:  affordable and appreciating housing, low unemployment, short commute times and availability of entertainment. 

In the final report, the Harrisburg-Carlisle area ranked #3 out of 9.  We know that Central PA is a great place to live and work and now the rest of the world will know as well.

To read the article in its entirety, please visit http://realestate.msn.com/Buying/Article2.aspx?cp-documentid=3863709>1=9226

Rock on Harrisburg! 

Some buyers may ponder the thought of “Why should I get a home inspection?  It’s only going to cost me more money.”  The fact is that spending anywhere from $200 - $400 can actually save you thousands of dollars. 

Buying a home is one of the biggest decisions that you will make during your lifetime.  Wouldn’t you be able to sleep better at night knowing that you are buying a home that is in good condition?  During a home inspection, a qualified expert will take an in-depth and unbiased look at the property you intend to buy.  The inspector will:  

-  Evaluate the overall exterior condition including the structure, construction and mechanical systems

-  Identify items that should be repaired or replaced

-  Estimate the useful life of major systems (such as electrical, plumbing, heating and cooling) as well as structure and finishes

The home inspector will provide a detailed written report regarding his/her findings.  Some inspectors provide this report immediately following the inspection.  If you don’t receive your written report at the conclusion of the inspection, request for the home inspector to provide the written documentation within 2-3 days of the appointment.  Remember, if your offer is contingent on a home inspection, you need to “Reply to Inspections” within the proper time frame.  If you don’t, then the contingency is removed and no longer valid.

My last piece of advice is ALWAYS, ALWAYS, ALWAYS attend the home inspection.  It is the perfect time to ask questions and learn about the home you are buying.  The money you spend on a home inspection will buy you piece of mind down the road.

Tips to sell your home in today’s market.

Tip #1 - Be realistic about the list price.  With all the inventory available, buyers are looking for a deal so make sure your asking price is right from the start.  If you really want to generate a buzz, set your asking price at 10% below the price of similar homes in the immediate area.  By doing so, you may receive multiple offers.

Tip #2 - It’s been said that selling a home today is a beauty contest in a price war.  To bring out the inner beauty of your home, consider hiring a home stager.  Home stagers will help deal with the clutter, rearrange furniture to create interesting focal points and giving new meaning to unused or under-utilized rooms.

Tip #3 - Offer cash!  The word “cash” always catches the eye.  Make your home more affordable by offering closing cost assistance.  First time buyers are typically looking for financial assistance and by offering $3000 towards closing costs it may make a difference between selling your house versus your neighbor’s house down the street. 

Happy selling!  

Are you thinking about buying in this market? It’s a great time to buy and let me tell you why.

Mortgage rates are very attractive. The average interest rate on a 30-year mortgage is 6.1%. By December, interest rates will most likely reach mid-6% and the forecast rate for 2009 is 7%. The inventory of homes is abundant and will remain so but financing is projected to get more expensive.

No one can time the bottom of the market. For buyers, now is the best time to buy - inventory is high and mortgage rates are low. Make sure you look at a reasonable amount of homes before you pick “the one” and then drive a hard bargain. If you are trading up, you may want to sell your current home first before you buy. If you don’t, you may be forced to pay two mortgages until your current home sells.

Do yourself a favor and don’t listen to the national news when it comes to real estate. Real estate is a local market (versus a national market). The Harrisburg area (Cumberland, Dauphin, York, Perry) is very stable and homes are selling at ALL price points. During the first quarter of 2008, in Central PA alone, 1,598 homes settled.

The following data is pulled from the Central Penn Multi-List Service. It’s proof that homes are selling in Central Pennsylvania at all price points. Naturally, the list price comes in to play so the data is segregated by the actual selling price (not list price).

Selling Price                   Units Sold               Avg. Days on Market                 Active Listings

$199,999 and below         1,011                                44                                           2,023

$200,000 - $299,999         298                                  93                                           1,088

$300,000 - $399,999         102                                  94                                              488

$400,00 and above             60                                  111                                             504

Note to Sellers: If the market value of your home is hovering around $200,000, it is in your best interest (if you want a fast sale) to price your home under $199,999. Homes are selling fast in the $199,999 and under category.

Note to Buyers: The same information applies to you. If you are looking to buy in the $199,999 range and under, be prepared to make an offer on a home that you really like. If you hesitate or take a week or so to get pre-approved, the home may be under contract and no longer available.

Today’s trend is to bring your indoor setting outdoors. Let me explain…everyone is looking for more living space and one great way to do that economically is to create a comfortable living space outdoors.  Think of your living room or family room.  You have furniture, lighting, and accessories.  For your outdoor living space, you will want the same elements. 

If your patio is directly off your den or family room, consider tying to the two spaces together.  For example, if your family room is primarily decorated in blue and brown then use blue and brown in your outdoor space as well.  Find comfortable and durable resin furniture (brown) and accessorize with blue pillows and blue flowers.  This will visually extend the inside room and make it appear larger. 

Also, don’t forget the grill.  Is your grill clean?  Think of the message you are sending when buyers see a dirty grill.  If your grill is sparkling clean then they will think the same of your home.  What is the condition of your grill cover?  If it is tattered and worn then it’s time to get rid of it.  If you know in advance that your home is being shown that day then remove the grill cover and let your sparkling clean grill shine to all the buyers to tour your home.

Gone are the days of 100% financing.  In order to buy your first home you need to financially prepare yourself so when the perfect house comes along you can go after it with some buying power.

Tip #1 - Save money for a down payment and closing costs.

Down payments usually range between 3-20 percent of the property value.  The exact percentage will be determined by the type of mortgage loan.  Closing costs consist of title insurance, taxes, points (if applicable), financing costs, items that must be prepaid prior to settlement and other settlement costs.  Buyers should receive an estimate of these costs either from the lender and/or from the broker.

Tip #2 - Get pre-approved from a lender.

Before you start looking at homes, you need to know how much you can afford.  Call a local lender or ask your Realtor who they recommend you should call to get pre-approved.  Your income, debt and credit history will determine how much you can borrow.

Tip #3 - Verify your credit report.

Request your credit report from each of the three credit reporting companies:  Equifax, Experian and Trans Union.  You will want to make sure the report is accurate and fix anything that is not.  Potential lenders will review your credit history and based on your credit report they will determine whether or not they will grant you a mortgage loan.  Get your credit report in good shape in advance of applying for a mortgage.

Tip #4 - Don’t make any major purchases!

Although you may be tempted to buy a new car, don’t do it right before you want to buy a home.  It may decrease your chances of getting a loan or it could potentially lower the amount of the loan.

Tip #5 - Familarize yourself with the local real estate market.

Start researching the home values in neighborhoods that catch your eye.  Also, you need to educate yourself on the TOTAL cost of home ownership such as homeowner’s insurance, remodeling costs, maintenance costs, utility bills, Home Owner Associations (if applicable), etc.

Home ownership is a wonderful thing and a great investment for your future.   Hiring an experienced real estate professional will also better prepare you for this adventure.  They can guide you through the process and make it a fun and rewarding experience. 

Starting in May, the U.S. Treasury Department will begin mailing tax rebate checks to eligible tax payers.  If your home is currently on the market, I have several suggestions to consider as to how to spend your rebate.

1.   Give it to the buyer

What a nice cash bonus for potential home buyers!  It may even be enough to coax them into escrow.

2.  Improve your curb appeal

First impressions do matter!  A little bit of money and sweat equity can go a long way to improving your curb appeal - freshen the mulch, plant colorful flowers, weed the flower beds, and trim overgrown bushes and trees.

3.  Professionally stage your home

Hire a professional stager so the interior of your home makes a positive impression as potential buyers tour your home.  The money invested will be repaid by shorter time on the market and/or a higher sales price.

4.  Buy a home warranty for the buyer

Including a home warranty with the sale of your home helps ease the buyer’s mind.  When it comes down to making an offer on a home, sometimes this extra protection is enough to win a potential buyer over.

5.  Buy a home inspection

This will help you get your home into the best competitive shape for the market.  In addition, it will give you advance notice of what needs to be fixed prior to settlement such as building code violations.

According to research conducted by The Patriot-News, the midstate’s economy is doing pretty well. In fact, better than the national average. Two key indicatores are:

Unemployment Rate Foreclosures

Harrisburg Area 4.1% Up 7% in 2007

Lebanon County 3.9%

York County 4.3%

National 4.9% Up 75% over previous year

Overall, Central Pennsylvania did not experience skyrocketing home prices or new build growth like other areas of the country. Therefore, we are not suffering from the “pounding” that other areas of the country are currently trying to endure. Living in the midstate is a great thing!

According to an article published by The Associated Press in The Sunday Patriot News (March 23, 2008), mortgage lenders are making it harder for potential borrowers - even borrower’s with good credit. Borrowers who can not afford to put the traditional 20% downpayment on a home require the backing of a mortgage insurer.

In recent weeks, mortgage insurers have flagged nearly 25% of the nation’s zip codes where they refuse to insure home loans. The following states have experienced the highest foreclosure rates and the worst price declines therefore the entire state is blackballed for some mortgage insurers: Arizona, California, Florida, Michigan, Nevada, and Ohio.

On the flip side, in central Pennsylvania, the housing market continues to fare better than most. In 2007, home prices continued to rise and foreclosure files increased only moderately.

What does this mean for new home buyers? It can mean that higher downpayments, a more thorough review of credit scores, among other requirements. In areas where the home values are declining, more restrictions are in place however regions such as central Pennsylvania are not immune although home values are rising.